Selected observations on topics of interest to a retired geezer with a computer and time to devote to something beside a golf game going South.

Monday, May 10, 2010

The no health insurance option

AT&T spends $2.4 billion a year on coverage for its almost 300,000 active employees, a number that would fall to $600 million if AT&T stopped providing health care coverage and paid the penalty option instead.

Other large companies face similar situations. The question is, therefore, will these companies be sorely tempted to just pay the fine and let the workers look for health insurance elsewhere? It could be a great financial boon to any company with more than 50 employees.